ISLAMABAD, Dec 7: Tax experts of the seven Saarc-member countries on Tuesday concluded and agreed on draft multilateral agreement on avoidance of double taxation and administrative assistance in tax matters.

Officials said that the agreed draft would now be submitted to the respective governments of the seven Saarc member countries for approval. After approval, the agreement was expected to be signed in the next Saarc Summit scheduled to be held in Dhaka in January 2005.

The agreement was concluded at the conclusion of a two-day meeting of the Saarc sub-group on avoidance of double-taxation here on Tuesday. The delegates were headed by representatives of the tax and revenue department of the Saarc member states with assistance from legal department in certain cases.

The decision to conclude a multilateral agreement on double-taxation was first taken in first meeting of the inter-governmental expert group (IGEG) on investment, arbitration and avoidance of double-taxation held in March in New Delhi.

The sub-group of avoidance of double taxation discussed the draft treaty in October but the members desired to hold another meeting so that further information and comments could be provided on the draft agreement for discussion.

This agreement would be first of its kind in the region. It would go a long way in promoting investment, business and economic activities in the Saarc member states.

The concept of regional cooperation was a popular and successful global phenomenon, which has given impetus to economic and social integration of the people through cost-effective mobilization of resources available in the region.

An official announcement said that member income tax policy, National Board of Revenue, Bangladesh, A. S Jahir Muhammad in his vote of thanks appreciated the CBR for the warm welcome to the Saarc delegates. He also appreciated the manner in which the proceedings of the meeting were conducted.

The Saarc countries had concluded quite a few double taxation agreements with developed as well as developing countries. The agreements, conventions concluded in 1950's and 1960's were based on earlier models. However, after 1980, UN model modified by OECD model has been used for concluding such treaties with developed countries.

Multilateral taxation treaties have been signed by a number of countries - Arab Tax Treaty (Egypt, Iraq, Jordan, Kuwait, Sudan, Syria and Yemen); a Multilateral Conventions adopted by Bolivia, Columbia, Chile, Ecuador, Peru and Venezuela; Kenya, Tanzania, Uganda agreement; Nordic countries - Denmark; Finland, Iceland, Norway and Sweden.